How to improve your debt situation
Remember, when it comes to managing your debt, you are not alone. Whether you’re a current Heritage customer, or a customer looking for change, our specialist lenders and financial planners are here to help.
Not ready to talk right now? We’ve put some information together to help you get started with managing your debt more effectively.
By reviewing your budget, including all debts and how much each is costing you, you will get an idea of exactly where your money is going. Review all financial products and understand how much these are costing you as part of this process. This is a good basis for then setting realistic goals and expectations for your finances.
You could explore setting long-term and short-term goals for your finances. A short-term goal could be to research options to consolidate your debt, helping you to pay it off sooner. A long-term goal could be to pay off certain debts before purchasing a new big-ticket item.
A regular review of your budget can help you feel more in control of your finances, and improve your financial position.
Here are some simple changes to consider making now to help you reduce your debt sooner, and feel more in control.
By selecting appropriate products, you may be able to use debt to help you get ahead financially. For example, by using a credit card interest-free period, you could keep your savings in your account longer – helping to earn interest, or offset against a bigger debt, such as a home loan.
You could also consider a balance transfer, and take advantage of low or no interest rates for a promotional period.
Credit cards do have many benefits, particularly if you pay your balance down each month. However, if you’re feeling like a credit card may not be the best fit for you, you could consider a personal loan. A personal loan allows you to budget for fixed monthly repayments, and you’ll most likely be charged a lower interest rate than you would on a credit card, helping to repay your debt sooner.